United Investors Group Global Investment Company
Even the best-designed multi-manager portfolio can move out of alignment with your investment policy statement. Just a small misalignment over time can result in exposure gaps, unintended risks, and a significant diversion from the path of your strategic investment beliefs.
When an investor allocates capital to more than one manager, an interaction effect exists, which will impact the investor’s overall portfolio outcome. Due to this interaction effect between managers, unintended risks may emerge in the portfolio. Simply put, the combined positions of all managers may result in a bias toward a particular risk related to sector, region, or factor. These risks may not be fully aligned with the investor’s preferred positioning based on long- and short-term investment opportunities and desired risk allocations.
Russell Investments’ completion portfolios are designed to keep a client’s investments precisely aligned with their investment beliefs without sacrificing the power of a multi-manager approach.
